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    OPINION                                                            FEBRUARY 13, 2026       |  The Indian Eye 11

                Strategic Autonomy, Reinter-                                                                      ing markets, and anchoring democrat-
            preted                                           KEY NUMBERS AT A GLANCE:                             ic supply chains.
                India’s  foreign  policy  has  long                                                                   India is no longer merely adapt-
            been  guided  by  the  principle  of   • Previous tariff exposure     : Up to 50%                     ing  to  global  change;  it  is  helping
            strategic  autonomy—the  freedom                                                                      shape it.
            to  engage  with  multiple  partners   • New tariff regime            : 18%                               Conclusion: Diplomacy, Leader-
            without  binding  alignment.  Critics                                                                 ship, and the Road Ahead
            may  view  the  current  agreement  as   • US–India trade deficit (2024)   : $45+ billion                 The reduction of US tariffs on In-
            a dilution of that doctrine. In truth,                                                                dian goods to 18 percent is ultimately
            it  represents  its  evolution.  Strategic   • US exports committed by India   : $500 billion+        a  vote  of  confidence—confidence  in
            autonomy  does  not  mean  econom-                                                                    dialogue over disruption, cooperation
            ic isolation or diplomatic rigidity. It   uncertainty  amid  discussions  of  ex-  India. This transition, while challeng-  over confrontation, and realism over
            means  retaining  decision-making   treme  duties—up  to  100  percent—  ing, may ultimately deepen innovative   rigidity. While the agreement stabiliz-
            agency  while  adapting  to  changing   on  branded  and  patented  medi-  ecosystems on both sides.  es markets, protects livelihoods, and
            global circumstances. The tariff reset   cines.  The  new  framework  brings   Institutions Behind the Agreement  restores  competitiveness,  its  deeper
            allows India to protect its economic   much-needed  stability,  particularly   It is important to recognize that   value lies in what it reveals about how
            interests,  preserve  its  largest  export   for generic drugs and active pharma-  such outcomes do not emerge sponta-  modern  diplomacy  works:  patiently,
            market, and remain a credible global   ceutical ingredients, which form the   neously. They are the product of sus-  persistently,  and  often  beyond  the
            partner,  all  while  navigating  an  in-  backbone  of  India’s  pharmaceutical   tained  institutional  engagement.  On   glare of public attention.
            creasingly polarized world.       exports to the United States. Lead-  the Indian side, the Prime Minister’s   This dimension was underscored
                Importantly,  this  realignment   ing  firms  are  expected  to  see  8–10   Office,  the  Ministry  of  External  Af-  earlier today when the US Ambassa-
            is not absolute. While energy sourc-  percent  improvements  in  EBITDA,   fairs, and the Ministry of Commerce   dor to India, speaking live on NDTV,
            ing shifts away from Russia, India’s   reinforcing India’s long-standing role   and  Industry  played  central  roles  in   highlighted the 30-minute interaction
            longstanding  defense  relationship   as  a  dependable  supplier  of  afford-  aligning  economic  objectives  with   between  Prime  Minister  Narendra
            with  Moscow—rooted  in  decades   able  medicines.  In  a  global  health-  diplomatic realities. On the US side,   Modi  and  President  Donald  Trump,
            of cooperation—remains a separate   care  environment  still  sensitive  to   the  White  House,  the  Departments   emphasizing  the  warmth,  mutual
            and carefully managed domain. The   supply  disruptions,  India’s  position   of  State  and  Commerce,  and  trade   respect,  and  personal  rapport  be-
            agreement  demonstrates  that  nu-  as the pharmacy of the world remains   negotiators  worked  to  reconcile  do-  tween  the  two  leaders.  His  remarks
            ance,  not  absolutism,  continues  to   not only intact, but strategically rein-  mestic priorities with global strategy.   reinforced a critical truth: that agree-
            define Indian diplomacy.          forced.                           Equally significant has been the role   ments of this scale are rarely the re-
                Sectoral  Implications:  Who      Agriculture reflects a more bal-  of  embassies  and  consulates—often   sult of a single negotiation, but rather
            Gains, and How                    anced  exchange.  Reduced  barriers   working quietly, behind the scenes—  the cumulative outcome of sustained
                The  impact  of  the  agreement   benefit American farmers exporting   to maintain dialogue, manage percep-  engagement,  frequent  exchanges,
            varies  across  sectors,  but  the  over-  pulses and specialty crops, while low-  tions,  and  bridge  differences.  Their   and trust built over time. The steady
            arching effect is one of stabilization   er  US  tariffs  enhance  the  competi-  efforts reaffirm the enduring value of   movement of elected representatives,
            rather than disruption. In the infor-  tiveness of Indian agricultural prod-  diplomacy in an age often dominated   senior officials, and business delega-
            mation technology sector, direct tar-  ucts. The result is not displacement,   by rhetoric and unilateralism.  tions  between  India  and  the  United
            iff exposure has always been limited,   but integration.                A Transactional World, Honestly   States created  the  political  and eco-
            given the dominance of services over   From  an  economic  standpoint,   Acknowledged                 nomic  ecosystem  necessary  for  such
            goods.  However,  the  broader  cer-  tariff  reduction  functions  as  vital   This  agreement  also  reflects  a   a  breakthrough.  The  shared  intent
            tainty created by the agreement is ex-  damage  control.  Analysts  estimate   broader  truth  about  the  contempo-  of  both  leaders  to  visit  each  other’s
            pected to accelerate collaboration in   that  maintaining  tariffs  at  punitive   rary international system: it is increas-  countries  in  the  near  future  further
            artificial intelligence, cloud comput-  levels  could  have  resulted  in  export   ingly transactional. Trade concessions   signals that this partnership is not epi-
            ing, and digital transformation initia-  losses  exceeding  $50  billion  and   are exchanged for strategic alignment.   sodic but enduring.
            tives. Indian IT majors are projected   threatened  the  livelihoods  of  nearly   Economic incentives replace ideolog-  In a world increasingly shaped by
            to secure an additional $2–3 billion in   3.5 million workers. The reset to 18   ical declarations. Energy flows shape   transactional  diplomacy,  the  US–In-
            new contracts as confidence returns   percent restores competitiveness and   foreign  policy.  Acknowledging  this   dia tariff reset stands out as a remind-
            to cross-border technology spending.  predictability,  allowing  businesses  to   reality  does  not  weaken  democracy;   er that pragmatism need not come at
                That  said,  the  agreement  does   plan, invest, and grow. Markets have   it  strengthens  it  by  grounding  coop-  the  cost  of  partnership.  Challenges
            not eliminate all friction points. The   responded  accordingly.  The  Indian   eration  in  tangible  mutual  benefit.   remain—particularly  around  skilled
            introduction of a $100,000 one-time   rupee has stabilized, equity sentiment   The  public  statements  by  President   mobility,  regulatory  alignment,  and
            fee  for  new  H-1B  visas,  along  with   has  improved,  and  exporters  have   Trump linking tariffs to global peace   non-tariff barriers—but the direction
            the  shift  toward  wage-based  selec-  regained  confidence.  For  global  in-  efforts,  and  Prime  Minister  Modi’s   is  unmistakable.  The agreement rep-
            tion, continues to reshape workforce   vestors, the agreement reinforces the   emphasis on partnership and stability,   resents not an endpoint, but a founda-
            strategies.  Indian  IT  firms  are  re-  message that India remains commit-  underscore a shared recognition that   tion: one upon which a more resilient,
            sponding pragmatically reducing de-  ted to openness, reform, and integra-  economic decisions now carry global   balanced, and future-ready economic re-
            pendence  on  visas,  expanding  local   tion into global value chains.  consequences.                lationship between the world’s two larg-
            hiring in the United States, and sig-  This  confidence  extends  beyond   India at the Center of Global   est democracies can continue to be built.
            nificantly scaling up Global Capabili-  India. For American companies, the   Trade Realignment
            ty Centers (GCCs) within India. This   agreement  opens  access  to  one  of   The  timing  of  the  US–India   H S Panaser: Chairman, Global Indian
            structural  shift,  while  initially  chal-  the  world’s  largest  and  fastest-grow-  agreement  is  particularly  significant.   Trade and Cultural Council, USA l Busi-
            lenging,  may  ultimately  strengthen   ing  markets.  India’s  commitment  to   It follows closely on the India–Euro-  ness Development Consultant in Phar-
            distributed innovation models across   reduce import tariffs on US goods to   pean Union Free Trade Agreement, a   maceuticals, IT and AI I EDP I Advisor
            both economies.                   zero in several categories, along with   landmark accord affecting nearly two   in merger and acquisitions I GSK I Ex
                The   pharmaceutical  sector   long-term  purchasing  commitments   billion people. Together, these devel-  Chair, USINPAC I President at Global
            emerges as one of the clearest ben-  estimated  at  over  $500  billion,  ad-  opments  position  India  as  a  central   Indian Diaspora Alliance l Associated
            eficiaries  of  the  tariff  reset.  Indian   dresses  longstanding  concerns  about   node in the reconfiguration of global   with Prof. Harkishan Singh Foundation I
            drug manufacturers had faced acute   market access and trade imbalance. in   trade—bridging  continents,  connect-  Social Activist I Columnist

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